"One of the largest deals ever for a stablecoin startup has fallen through. Coinbase has called off acquisition talks with the U.K.-based BVNK, a spokesperson for the crypto exchange confirmed to Fortune. It wasn't immediately clear why Coinbase iced the deal, which had gotten as far as the due diligence process and seen the crypto giant and BVNK enter into exclusivity in October, meaning the startup couldn't entertain offers from other bidders."
"The acquisition price for BVNK-which helps customers use stablecoins for payments, cross-border transactions, and other use cases-was around $2 billion. If the deal had gone through, it would have been nearly double the $1.1 billion the fintech giant Stripe paid to acquire the stablecoin startup Bridge in an acquisition that closed in February."
"Stablecoins are cryptocurrencies pegged to underlying assets like the U.S. dollar. They are designed to stay stable, as opposed to more volatile tokens like Bitcoin and Ethereum. Proponents say stablecoins can upgrade legacy financial infrastructure, speed up cross-border payments, and reduce transaction fees. Their rise has caught the attention of big banks and the largest payments networks-so much so that Mastercard has explored stablecoin acquisitions of its own. The payments giant was previously in the running to acquire BVNK and now is in discussions to acquire the crypto and stablecoin infrastructure company Zerohash for between $1.5 and $2 billion, Fortune previously reported."
Coinbase ended acquisition talks with U.K.-based BVNK after due diligence and an exclusivity period, nullifying a potential deal around $2 billion. BVNK helps customers use stablecoins for payments, cross-border transactions, and other use cases. The planned price would have been nearly double Stripe's $1.1 billion acquisition of Bridge earlier in the year. Stablecoin M&A activity has accelerated as stablecoins—cryptocurrencies pegged to assets like the U.S. dollar—promise faster cross-border payments and lower fees. Major payments firms including Mastercard have pursued stablecoin targets and are exploring deals such as Zerohash valued between $1.5 and $2 billion. BVNK declined to comment.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]